Hugoton Basin

LINN Energy’s Hugoton Basin position consists of oil and natural gas properties located in southwest Kansas extending through the Oklahoma Panhandle into the central portion of the Texas Panhandle.

The Company’s Kansas and Oklahoma Panhandle properties primarily produce from the Council Grove and Chase formations at depths ranging from 2,200 feet to 3,100 feet. LINN’s Texas properties in the basin primarily produce from the Brown Dolomite formation at depths of approximately 3,200 feet. The Company’s properties in this region are primarily mature, low-decline natural gas wells.

Hugoton Basin proved reserves represented approximately 28 percent of total proved reserves at December 31, 2014, of which 83 percent were classified as proved developed. This region produced 188 MMcfe/d or 15 percent of the Company’s 2014 average daily production. During 2014, the Company invested approximately $52 million to develop the properties in this region. During 2015, the Company anticipates spending approximately two percent of its total oil and natural gas capital budget for development activities in the Hugoton Basin region.

For the most recent operational updates, review our presentations and news releases.

To more efficiently transport its natural gas in the Texas Panhandle to market, the Company owns and operates a network of natural gas gathering systems comprised of approximately 665 miles of pipeline and associated compression and metering facilities that connect to numerous sales outlets in the area. LINN also operates two natural gas processing plants in southwest Kansas. The Company owns the Jayhawk natural gas processing plant with capacity of approximately 450 MMcf/d, and has a 51 percent operating interest in the Satanta natural gas processing plant with capacity of approximately 220 MMcf/d, allowing it to extract maximum value from the liquids-rich natural gas produced in the area. The Company’s production in the area is delivered to the plants via a system of approximately 3,900 miles of pipeline and related facilities operated by LINN, of which approximately 2,050 miles of pipeline are owned by the Company.